TORONTO, Oct. 27 /CNW/ - The Royal Canadian Mounted Police Toronto Integrated Market Enforcement Team (Toronto IMET) today laid criminal charges against Stanko J. Grmovsek (age 40) of Woodbridge, Ontario in a multi-million dollar fraud and insider trading scheme.
RCMP Investigators working jointly with staff of the Ontario Securities Commission (OSC) are alleging that Grmovsek engaged in fraud by trading on inside information between 1994 and 1999 and engaged in prohibited insider trading between 2004 and 2008. More specifically, it is alleged that Grmovsek knowingly used insider information to buy or sell, directly or indirectly, securities to which the information relates.
The Toronto IMET and OSC investigators further alleged that Grmovsek also laundered profits derived from fraud and illegal insider trading between 1994 and 2008. Investigative agencies, with assistance from Toronto IMET, will seek forfeiture of Grmovsek's illicit trading profits which are estimated to be approximately $9 million USD.
The ability of the Toronto IMET to advance the investigation was made possible through the cooperation received from the Ontario Securities Commission, the Ministry of the Attorney General of Ontario - Crown Law Office (Criminal), the United States Securities and Exchange Commission, the Federal Bureau of Investigation, New York, and the Securities and Commodities Fraud Task Force and the United States Attorney's Office - Southern District of New York.
Through intense negotiations in Canada and in the US, Grmovsek turned himself over to the police on October 26, 2009 and was arrested and subsequently released on his own recognizance. He appeared in court at Old City Hall Court this morning and entered guilty pleas to all criminal charges. The matter has been put over for a recital of facts of the offence and for sentencing submissions on Friday the 30th of October, 2009 at 9:30 am.
The Integrated Market Enforcement Team Program prevents, investigates and prosecutes serious Criminal Code capital markets fraud offences that are of regional or national significance and that threaten investor confidence or economic stability in Canada.
SOURCE Royal Canadian Mounted Police
For further information: For further information: Sgt. Marc LaPorte, RCMP "O" Division Media Relations, Office: (519) 640-7302; Cell: (416) 992-4409; For more information on IMETs: http://www.rcmp-grc.gc.ca/imet-eipmf/index-eng.htm